McKinsey experts advocate integrated approach to global empowerment at BT India@100 Summit

Sven Smit, the Chair of the McKinsey Global Institute, addressed the importance of a holistic approach to global empowerment during his participation in the second edition of the BT India@100 Summit held in New Delhi. The summit's session titled ‘Growth Goals for the G20’ provided the platform for his insights.

Discussing his report, ‘From Poverty to Empowerment,’ Smit highlighted the pivotal elements contributing to the worldwide empowerment of individuals. He stressed that achieving sustainable and inclusive growth necessitates an integrated perspective that doesn't isolate growth, sustainability, and empowerment, but rather views them as interconnected components.

Smit underlined the interplay between these factors, saying, “When we consider sustainable, inclusive growth, our approach should be to address growth, sustainability, and empowerment concurrently, recognizing their interdependencies.”

He further elaborated, cautioning against the risks of singular focus. “Focusing solely on sustainability might lead to pursuing it at any cost, potentially hampering both growth and the empowerment of people. Similarly, concentrating solely on growth and sustainability, without addressing empowerment, could result in a superficial sense of progress, insufficient to genuinely empower individuals.”

According to Smit's perspective, empowered individuals experience a substantially improved quality of life compared to those hovering just above the poverty line. These empowered individuals possess financial reserves that shield them from crises stemming from disruptions in income flow. Moreover, their agency extends beyond addressing personal needs; they actively contribute to the betterment of society.

Expanding on this viewpoint, Gautam Kumra, Chairman of McKinsey & Company – Asia, accentuated Asia's evolving role in the global landscape. “Asia presently accounts for 40 per cent of the world's GDP, with an anticipated 50 per cent of global economic growth projected to originate from the region. This places Asia at the forefront of global economic expansion, underscoring its integral contribution to worldwide progress. However, the imperative of sustainability looms prominently, especially concerning India.”

Delving into the challenge of inclusion, Kumra acknowledged, “While substantial progress has lifted billions out of poverty, a considerable segment of the global population remains below the threshold of true empowerment. Inclusion emerges as a paramount challenge in fully realizing the potential of these individuals.”